jammu & kashmir - ibef.org

For updated information, please visit www.ibef.org April 2019

JAMMU & KASHMIR

PARADISE ON EARTH

DAL LAKE IN SRINAGAR, JAMMU AND KASHMIR

Table of Content

Executive Summary……………..……….….3

Introduction…..…………………..…………..4

Economic Snapshot…….……………….…..9

Physical Infrastructure………………….….15

Social Infrastructure……….…………..…...22

Industrial Infrastructure..............................25

Key Sectors………….…….…..…….......…27

Key Procedures and Policies……..……….34

Annexure…….……….........................……42

For updated information, please visit www.ibef.orgJAMMU & KASHMIR3

EXECUTIVE SUMMARY

Jammu & Kashmir (J&K) is a global tourist destination. In addition to traditional recreational tourism, a vast scope

exists for adventure, pilgrimage, spiritual & health tourism.

Overall tourist arrival in the state of Jammu Kashmir in 2017(P) stood at 14.32 million.

A vast natural resource base has enabled J&K to develop land for cultivating major fruits. The state’s share in the

overall apple production in India was 76.25 per cent in 2017-18(P), with the overall production of apples in the

state reaching around 1.74 million MT.

With varied agro-climatic conditions, the scope for horticulture is significantly high in the state. There is

considerable scope for increasing the horticulture produce, which is exported.

Department of Floriculture of the state has submitted a policy for floriculture development to the state

government. The policy will aim at promoting investments and fiscal incentives.

J&K has an ideal climate for floriculture and an enormous assortment of flora and fauna.

The state has Asia’s largest tulip garden.

The state recorded production of 30.09 thousand metric tonnes of flowers during 2017-18* of which 29.70

thousand metric tonnes were loose flowers and 0.39 thousand metric tonnes were cut flowers.

The average rate of electricity for industrial consumers in J&K ranges from US$ 0.05–0.086, while that for

commercial consumers ranges from US$ 0.05–0.06; these rates are relatively lower than those in most other

Indian states.

Over the years, silk industry of the state witnessed huge growth. Production of raw silk in the state for 2017-18(P)

stood at 132 MT and 45 MT for FY18-19 till Dec 2018.

Strong tourism sector

Leader in agro-based

industry

Strong

horticulture sector

Vibrant

floriculture sector

Lowest power tariffs

World famous

handicrafts industry

Source: Ministry of Tourism, Ministry of Agriculture

Note: P – Provision, * - 1st Advance Estimates, Data expected in November 2019

JAMMU & KASHMIR

INTRODUCTION


JAMMU & KASHMIR FACT FILE

Jammu & Kashmir is the northernmost state of India. The state

shares borders with Himachal Pradesh and Punjab, and the

neighbouring countries of Pakistan, China and Afghanistan. J&K

consists of three regions: Jammu, the Kashmir Valley and Ladakh.

The important cities and towns are: Jammu, Srinagar, Gulmarg,

Pahalgam, Leh and Udhampur.

The climate of J&K varies considerably with its topography. The

climate is primarily temperate. Jammu is known as the winter capital

of the state while Srinagar is known as the summer capital.

Urdu, Kashmiri and Dogri are J&K’s official languages; Hindi, Pahari

and Ladakhi are also spoken in some parts of the state.

Important rivers flowing through J&K include the Indus, the Chenab,

the Jhelum, the Tawi and the Ravi.

Source: Maps of India

Parameters Jammu & Kashmir

Capital citiesSummer capital – Srinagar

Winter capital – Jammu

Geographical area (sq km) 222,236

Administrative districts (No) 22

Population density (persons per sq km) 124

Total population (million) 12.5

Male population (million) 6.6

Female population (million) 5.9

Sex ratio (females per 1,000 males) 889

Literacy rate (%) 68.74

Source: Planning & Development Department, Government of Jammu & Kashmir, Census 2011


ADVANTAGE JAMMU & KASHMIR

Paradise on earth

J&K is naturally pollution free and provides a

salubrious environment.

The natural beauty & picturesque locations have

made it a favoured destination for tourists. Jammu

is famous for its temples, while the Kashmir Valley

is known for its lakes & gardens.

Policy incentives

J&K has an industrial policy that offers attractive

incentives along with a single-window clearance

mechanism.

Land is allotted at concessional rates in industrial

areas on lease for 90 years.

The cost of setting up operations is comparatively

lower than other states.

Horticulture and floriculture

J&K has agro-climatic conditions best suited for

horticulture & floriculture. Horticulture is the

mainstay of the rural economy, providing

employment to thousands.

The floriculture industry supplies flowers to

domestic & international markets.

Rich labour pool

J&K’s inhabitants are skilled weavers & designers

of textile products. This provides a basis for setting

up more textile units.

The traditional skills of the people in craftsmanship

can be utilised to meet the demands of industrial

processes.

Advantage

J&K


JAMMU AND KASHMIR IN FIGURES

ParameterJammu &

KashmirIndia

GSDP as a percentage of all

states’ GSDP0.84 100.00

GSDP growth rate (%) 11.71 9.80

Per capita GSDP (US$) 1,577.86 1,966.20

Jammu & Kashmir’s Contribution to Indian Economy (2017-18)

Parameter Jammu & Kashmir India

Installed power capacity

(MW) as of February 20193,393.74 350,162.48

Wireless subscribers (No)

as of January 201911,538,212 1,181,971,713

Internet subscribers (Mn)

as of December 20186.48 604.21

National highway length

(km)2,423 131,326

Airports (No) 3 129

Physical Infrastructure in Jammu & Kashmir

ParameterJammu &

KashmirIndia

Literacy rate (%) 68.7 73.0

Birth rate (per 1,000

population)15.7 20.4

Social Indicators

ParameterJammu &

KashmirIndia

PPP projects under

construction6 1749

Industrial Infrastructure

ParameterJammu &

KashmirIndia

Cumulative FDI equity inflows

since April 2000 (US$ million)6 409,268

Investments (as of December 2018)

Note: GSDP, per capita GSDP figures are at current prices, exchange rates used is average of 2017-18 i.e. 64.45, For source refer to Annexure


JAMMU & KASHMIR VISION

Vision

Agriculture

Skill

Development

Infrastructure

Transport

IndustriesInvestment

promotion

Tourism

Develop fisheries to provide rural

employment.

Promote organic farming to help

control degradation of natural

resources by avoiding large-

scale use of chemicals.

To make the state self-sufficient in

energy supply and reduce

dependence on other states.

Develop better roads in the

mountain regions for farmers to

market their products.

Develop vocational

training centres to impart skilled

training to women in various

crafts and traditional trades.

Create training facilities for

agriculture and cottage

industries.

Develop transportation network

to enhance rural connectivity.

Reform institutional machinery

to create public transport

facilities.

Sustainable and balanced

industrial growth with focus on

employment generation by

attracting large companies.

Optimal utilisation of natural

resources, 60 per cent of which are

commercially viable.

Create an environment to attract

private investment in job-oriented

projects.

Encourage development of small

and medium-scale sectors.

Develop eco-tourism in the state

apart from developing the state as

adventure, heritage and religious

tourist destination.

Promote rural tourism to provide

employment to rural people who are

dependent on agriculture for income.

Environment Address the issue of shrinking

natural water resources due to

pollution, encroachment and

siltation.

Conserve forests from depletion

due to population expansion.

Source: Government of Jammu & Kashmir

JAMMU & KASHMIR

ECONOMIC SNAPSHOT


ECONOMIC SNAPSHOT – GSDP

At current prices, GSDP of J&K has been estimated at Rs 1.41

trillion (US$ 21.86 billion) in 2017-18.

The state’s GSDP grew at a CAGR of 10.30 per cent, during 2011-

12 to 2017-18. The GSDP is expected to grow at 11.71 per cent (in

Rs) by 2018-19 to reach Rs 1.57 trillion (US$ 24.42 billion).

GSDP of J&K at current prices

Source: Economic Survey 2017, Directorate of Economics & Statistics of Jammu & Kashmir, Central Statistics Office, J & K Economic Survey 2017

Note: E – Estimate, F – Forecast, Per Capita GSDP^ - calculated using GSDP million US$/Population in million, data is expected to be updated from J&K's Economic Survey 2019

16.6

9

16.0

5

15.8

6

16.1

0

18.1

9

18.8

2 21.8

6 24.4

2

0.7

8 0.8

7

0.9

6

0.9

8

1.1

9

1.2

6 1.4

1 1.5

70

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2011-1

2

2012-1

3

2013-1

4

2014-1

5

2015-1

6

2016-1

7

2017-1

8E

2018-1

9F

US$ billion Rs trillion

CAGR (In Rs) 10.30%

Per capita GSDP

1,3

19.3

7

1,2

49.1

8

1,2

16.3

6

1,2

16.4

3

1,3

53.5

6

1,3

78.8

0

1,5

77.8

6

1,7

36.3

1

61,8

52.0

0

67,8

43.0

0

73,3

22.0

0

74,2

75.0

0

88,6

04.0

0

92,5

03.7

4

1,0

1,6

93.3

4

1,1

1,9

05.4

4

0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2011-1

2

2012-1

3

2013-1

4

2014-1

5

2015-1

6

2016-1

7

2017-1

8E

2018-1

9F

US$ Rs

CAGR (In Rs) 8.64%

J&K’s per capita GSDP^ in 2017-18 is estimated at around Rs

1577.86 (US$ 1,319.4).

The per capita GSDP increased at an average rate of 8.64 per

cent between 2011-12 and 2017-18. The per capita GSDP is

expected to reach Rs 111,905 (US$ 1,736.31) in 2018-19.


ECONOMIC SNAPSHOT – NSDP

NSDP of J&K at current prices

In 2017-18, J&K’s NSDP is estimated at around Rs 1.19 trillion (US$

18.51 billion).

The state’s NSDP increased at a CAGR (in Rs) of 10.02 per cent from

2011-12 to 2017-18. The state’s NSDP is expected to reach Rs 1.34

trillion (US$ 20.73 billion) in 2018-19.

Source: Directorate of Economics & Statistics of Jammu & Kashmir, Central Statistics Office, J & K Economic Survey 2017

14.3

5

13.4

4

13.2

2

13.2

7

15.3

3

15.8

5 18.5

1

20.7

3

0.6

7

0.7

3

0.8

0

0.8

1

1.0

0

1.0

6 1.1

9 1.3

4

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

0.00

5.00

10.00

15.00

20.00

25.00

2011-1

2

2012-1

3

2013-1

4

2014-1

5

2015-1

6

2016-1

7

2017-1

8E

2018-1

9F

US$ billion Rs trillion

CAGR (in Rs) 10.02%

Per capita NSDP

1,1

34.2

4

1,0

46.4

7

1,0

13.7

4

1,0

02.0

5 303.5

336.4

1,3

36.0

4

1,4

73.8

9

53,1

73.0

0

56,8

34.0

0

61,1

08.0

0

61,1

85.0

0

73,0

54.0

0

77,9

18.0

0

86,1

08.0

0

94,9

92.0

0

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1,00,000

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

2011-1

2

2012-1

3

2013-1

4

2014-1

5

2015-1

6

2016-1

7

2017-1

8E

2018-1

9F

US$ Rs

CAGR (in Rs) 8.37%

J&K’s per capita NSDP^ in 2017-18 was estimated at Rs 86,108.00

(US$ 1,336.04).

The per capita NSDP of J&K increased at a CAGR (in Rs) of 8.37

per cent between 2011-12 and 2017-18. The per capita NSDP for

2017-18 is forecasted to grow 10.32 per cent in 2018-19 to reach Rs

94,992 (US$ 1,473.89).

Note: E – Estimate, F – Forecast, Per Capita NSDP^ - calculated using NSDP million US$/Population in million, data is expected to be updated from J&K's Economic Survey 2019


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSVA

At current prices, the services sector contributed 56.98 per cent to

J&K’s GSVA in 2017-18(A) followed by the industry 22.02 per cent

and agriculture and allied industries 21.00 per cent sectors.

Agriculture and allied sectors witnessed fastest growth among the

three sectors, during 2011-12 to 2017-18(A), witnessing growth at a

CAGR of 13.51 per cent.

Industry sector expanded at a CAGR of 5.70 per cent from 2011-12

to 2017-18(A), driven by manufacturing, construction, electricity, gas

and water supply.

Services sector increased at a CAGR of 10.92 per cent between

2011-12 and 2017-18(A).

Visakhapatnam port traffic (million tonnes)Percentage distribution of GSVA

Source: Directorate of Economics & Statistics of Jammu & Kashmir, Central Statistics Office, J & K Economic Survey 2017

17.47%21.00%

28.09%22.02%

54.44% 56.98%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2017-18 (A)

Agriculture & Allied Industries Industry Services

Note: A – Advance Estimates, data is expected to be updated from J&K's Economic Survey 2019

CAGR

10.92%

5.70%

13.51%


ECONOMIC SNAPSHOT – INVESTMENTS

According to the DIPP, cumulative FDI inflows, during April 2000 to

December 2018, were valued at US$ 6 million.

The electricity and services sectors are the major contributors in the

economic growth of the state.

Moreover, due to the state being mineral rich, there exist numerous

business opportunities in various sectors - mainly, agriculture,

handloom, handicrafts, etc.

In March 2018, the Cabinet approved Rs 2,000 crore (US$ 310.32

million) package for refugees from Pakistan-occupied Kashmir(PoK).

The financial aid will be provided to 36,384 families, who are mostly

living in Jammu region, after their displacement from PoK post-

independence.

In 2018, five investments of Rs 162 crore (US$ 23.18 million) were

proposed and Rs 10 crore (US$ 1.43 million) proposed up to

February 2019 in the state.

Source: DPIIT: Department of Industrial Policy & Promotion

Note: ^ - Calendar Year, * - Up to February 2019

Investment Intentions under Industrial Entrepreneurs

Memorandum (IEM)

Year^ Number of

Investments

Amount

(US$ million)

2013 11 67.12

2014 12 44.30

2015 11 98.90

2016 8 146.03

2017 7 150.36

2018 5 23.18

2019* 1 1.43


ECONOMIC SNAPSHOT – JAMMU AND KASHMIR’S

EXPORT TRENDS

Total exports from Jammu and Kashmir stood at US$ 148.31 million during 2017-18. During 2018-19*, exports from the state stood at US$ 178.26

million.

Major items exported from the state of Jammu and Kashmir are RMG wool, drug formulation and biological, man made yarn and fabrics, etc.

During FY19*, RMG Wools from Jammu and Kashmir stood at US$ 28.07 million which was 15.75 per cent of the total exports.

Source: Directorate General of Commercial Intelligence and Statistics

Export Trend (US$ million)

153.66

124.47117.81

148.31

178.26

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2014-15 2015-16 2016-17 2017-18 2018-19*

Composition of Major Item Exported from Jammu and Kashmir

(FY19*)

15.75%

13.52%

7.90%

6.40%

6.15%3.72%

46.56%

RMG Wools Drug Formulation, Biologicals

Manmade Yarn Fabrics, Madeups Cotton Yarn

Carpet (Excl Silk) Organic Chemicals

Others

Note: * - Up to February 2019

JAMMU & KASHMIR

PHYSICAL

INFRASTRUCTURE


PHYSICAL INFRASTRUCTURE – ROADS

Jammu and Kashmir State Road Transport Corporation (JKSRTC)

provides public transportation in the state. As per J&K economic

survey 2017-18 the state had a total road length of 35,289 km of

which national highways constituted 2,423 km.

As of March 2019, there are 2,497 eligible unconnected habitations

under PMGSY in the state. Out of the total eligible habitations, 2,214

have been cleared and 1,754 have been connected.

Asia's longest 'Chenani-Nashri Highway Tunnel' is on Jammu-

Srinagar Highway. Five other tunnels are being developed in the

state at a cost of US$ 3.42 billion by National Highway Infrastructure

Development Corporation (NHIDCL. The tunnels will have all

weather access, and will be completed by 2024.

The Border Roads Organisation (BRO) is going to take up

upgradation of Jammu-Poonch highway into a four-lane

expressway. The Detailed Project Report of the project has been

submitted to Ministry of Road, Transport and Highways and it is

expected that the work will begin in 2019.


Road Type Road length (km) As of November 2018

National highways 2,423

Total road length#

35,289

Source: Ministry of Road Transport & Highways, NHAI - National Highways Authority of India, JKSRTC - Jammu & Kashmir State Road Transport Corporation, Economic Survey 2017-18

Note:, # - As of 1st April 2017


PHYSICAL INFRASTRUCTURE – RAILWAYS

Source: Economic Survey of J&K, 2017-18

Work on connecting Srinagar and Baramullah is underway. The

Katra–Qazigund (129 km) and Qazigund–Baramullah (119 km) rail

links have been taken up for construction as national priority

projects. The work on the Udhampur–Katra (25 km) section of the

rail link has been completed.

In May 2017, the government hired Konkan Railways to construct

the world’s tallest railway bridge over the river Chenab. The 1.315

km-long track is being built at a height of 359 metre, and will cost

around US$ 1.78 billion. The project is expected to be completed by

May 2019.


Udhampur to Baramulla Railway Line

ItemUdhampur-

Katra

Katra-

Qazigund

Qazigund-

Baramulla

Route length

(km)25 129 119

Bridges 38 62 811

Tunnels Length

(km)10.90 103.00 0

Longest tunnel

(km)3.15 10.96 -

Stations 3 11 15

Due to its predominantly mountainous terrain, J&K is linked with

the country’s rail network up to the Udhampur district.

The Government of India is planning to develop a 345 km long

railway line for joining the Kashmir valley and Indian Railways

network, so as to provide an alternate and reliable transportation

system to the people of J&K state. Note: Data is expected to be updated from J&K’s Economic Survey FY19


PHYSICAL INFRASTRUCTURE – AIRPORTS

Source: Airport Authority of India, Economic Survey 2014-15

The air travel in the state connects all the three regions of the state which include: Srinagar, Jammu and Leh. The Sheik-ul-Alam Airport at

Srinagar is a major international airport. Jammu and Leh are the domestic airports in the state. The state also has an airport in Kargil, which is

served by Djkota service.

The domestic airlines and destinations connecting the Srinagar airport include GoAir (Goa, Pune, Delhi, Jammu, Mumbai, Patna, Chandigarh,

Bengaluru), Air India (Delhi, Jammu, Leh), JetKonnect (Delhi, Bengaluru, Leh) and SpiceJet (Mumbai, Bengaluru, Delhi, Jammu).

In 2018-19*, the total number of passengers recorded in Srinagar, Jammu and Leh were 2,503,821, 1,213,258 and 776,174 respectively. The total

number of aircraft movements for the same time period recorded in Srinagar, Jammu and Leh were 17,058, 12,846 and 6,196, respectively.

In 2018-19*, the total freight recorded in Srinagar, Jammu and Leh amounted to 7,306 tonnes, 1,814 tonnes, and 1,525 tonnes respectively.

Airports 2014-15 2015-16 2016-17 2017-18 2018-19*

Srinagar 2,040,808 2,310,829 2,101,762 2,440,467 2,503,821

Jammu 952,641 1,117,252 1,159,937 1,443,965 1,213,258

Leh 403,243 408,541 563,800 692,010 776,174

Airports 2014-15 2015-16 2016-17 2017-18 2018-19*

Srinagar 14,828 16,268 15,543 17,918 17,058

Jammu 10,065 10,766 10,852 14,378 12,846

Leh 3,462 3,434 4,904 5,982 6,196

Airports 2014-15 2015-16 2016-17 2017-18 2018-19*

Srinagar 5,636 5,396 4,882 7,226 7,306

Jammu 1,685 1,685 2,242 1,813 1,814

Leh 1,339 1,442 1,665 1,622 1,525

Number of passengers (nos.)

Aircraft movement (nos.)Freight (Tonnes)

Note: * -Up to February 2019


PHYSICAL INFRASTRUCTURE – POWER

State-owned power is generated by the JKSPDCL. PDD is

responsible for all functions related to transmission and distribution of

power in the state. Industrial units are allowed to install their captive-

power generation plants, which are exempted from paying electricity

duty.

The identified hydro power potential for the state is 16,475 MW out of

the estimated 20,000 MW. The Chenab basin comprises of 11,283

MW, Jhelum basin consists of 3,084 MW, Ravi basin comprises of

500 MW and the Indus basin accounts for 1,608 MW.

Power generation in the state during April-November 2018 has

reached 13,057.60 GWH. As of February 2019, J&K had a total

installed power generation capacity of 3,393.74 MW, comprising

1,795.33 MW under central utilities, 1,534.03 MW under state utilities

and 64.38 MW under private utilities.

Of the total installed power generation capacity, 2,321.88 MW was

contributed by hydropower, 810.47 MW by thermal power, 193.41

MW by renewable power and 67.98 MW by nuclear power.

Jammu and Kashmir has a target of achieving of 1,155 MW solar

power energy by 2022.

Installed power capacity (MW)

68.42%

23.88%

5.70% 2.00%

Hydropower

Thermal Power

RenewablePower

Nuclear Power

Source: Central Electricity Authority

Break-up of installed capacity by source of power generation

2018-19*

Note: GWH – Giga Watt Hours, JKSPDCL - Jammu & Kashmir State Power Development, Corporation Limited, PDD - Power Development Department, * - As of February 2019

2,3

93.6

0

2,5

78.5

0

2,6

11.3

0

3,1

23.2

0

3,2

73.5

8

3,4

24.8

2

3,3

93.7

4

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

4000.00

2012-1

3

2013-1

4

2014-1

5

2015-1

6

2016-1

7

2017-1

8

2018-1

9*


PHYSICAL INFRASTRUCTURE – TELECOM

There are five secondary switching areas in the area: Jammu,

Srinagar, Udhampur, Rajouri and Leh. BSNL is one of the major

service providers of basic telephony and value added services in

J&K telecom circle.

According to the Telecom Regulatory Authority of India, J&K had

around 11.54 million wireless subscribers and 102,887 wire-line

subscribers with a tele density of 91.16 per cent, as of January 2019.

As of September 2018, the state of J&K had 6.02 million internet

subscribers.

By the end of January 2019, 1.00 million subscribers had submitted

requests for mobile number portability in Jammu & Kashmir.

Telecom infrastructure (As of January 2019)

Performance status Bharat Net Project

Source: Telecom Regulatory Authority of India, India Post, Ministry of Communications and Information Technology

Wireless subscribers 11,538,212

Wire-line subscribers 102,887

Teledensity (in%) 91.16

Internet subscribers* (million) 6.48

Service Ready GPs^^ 263

Pipe Laid (Km)^ 427

OFC Laid (Km)** 665

No. of GPs where OFC laid** 278

Major telecom operators in Jammu & Kashmir

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Vodafone

Reliance

Idea

Note: * - As of December 2018, ** - As of December 02, 2018, ^ - As of July 2017, GP-Gram Panchayat, OFC – Optical Fibre Cable, ^^ - as of January 02,2019


PHYSICAL INFRASTRUCTURE – URBAN

DEVELOPMENT

Among the hilly states of India, J&K is the most urbanised state, with 81 notified urban areas and 86 statutory towns. As per Census 2011, the

total urban population in the state was 27.37 per cent. The district of Srinagar ranked first with the highest urban population of 98.6 per cent,

followed by Jammu district having 50 per cent of urban population. Hence, Srinagar and Jammu cities are the focal points of urbanisation in the

state. As of June 2018, 5,165 households have been electrified under Saubhagya Scheme in the state.

As of January 2019, Jammu & Kashmir has been allocated Rs 593.05 crore (US$ 82.17 million) under AMRUT (Atal Mission for Rejuvenation and

Urban Transformation) scheme.

As per State Budget 2018-19, Government of Jammu & Kashmir allocated Rs 200 crore (US$ 30.89 million) under NABARD for taking up major

Water Supply Schemes.

Also, as per State Budget 2018-19, there are 1,069 ongoing water supply scheme under National Rural Development Program (NRDP) which are

at various stages of execution. The government allocated Rs 50 crore (US$ 7.72 million) for expediting completion of the schemes.

Component Approved cost sanctioned by SLSC (in US$ million)

Water supply 11.69

Road 12.7

Solid waste management 1.82

Sewerage 9.85

Source: JNNURM, Ministry of Urban Development, Government of India, Economic Survey of J&K, 2014-15, News articles

Note: Conversion rate: US$ = Rs 64.45

JAMMU & KASHMIR

SOCIAL

INFRASTRUCTURE


SOCIAL INFRASTRUCTURE – EDUCATION

Education is one of top priorities of the state government. Jammu

district has 960 primary schools, 300 middle schools, 108 high

schools and 62 higher secondary schools.

J&K is the only state where education is free up to the university

level. Seasonal schools have been opened for people in the hilly

areas and underprivileged population.

J&K has a literacy rate of 68.74 per cent, the male literacy rate is

78.26 per cent and female literacy rate is 58.01 per cent.

In State Budget 2018-19, the state government allocated US$

1,017.44 million as revenue expenditure for education sector.

Literacy rates (Census 2011)

Literacy rate (%) 68.74

Male literacy (%) 78.26

Female literacy (%) 58.01

Premier institutions in J&K

National Institute of Technology

University of Jammu

University of Kashmir

Sher-e-Kashmir University of Agricultural Sciences and Technology

of Jammu

Sher-e-Kashmir University of Agricultural Sciences and Technology

of Kashmir

Shri Mata Vaishno Devi University

Islamic University of Science & Technology

Baba Ghulam Shah Badhshah University

Source: Economic Survey of Jammu & Kashmir 2014-15, 2017-18


SOCIAL INFRASTRUCTURE – HEALTH

As of April 2019, J&K had 31 District Hospitals, 749 Primary Health

Centres, 2,868 Sub-Centres and 135 Community Health Centres.

Under National Rural Health Mission (NRHM), Rs 485.82 crore (Rs

75.38 million) has been allocated for the state out of which Rs

373.26 (US$ 57.91 million) has been released for 2017-18.

In the State Budget 2018-19, an allocation of US$ 545.10 million was

made for health and medical education.

As per Economic Survey 2017-18, the state government is

implementing various healthcare schemes. Some of which are listed

below

Health infrastructure (as of April 2019)

Health Indicators (2016)

District Hospitals 31

Primary Health Centres 749

Sub-Centres 2,868

Community Health Centres 135

Birth rate* 15.7

Death rate* 5.0

Infant mortality rate^ 24

Life expectancy at birth (years)

Male (March 2014) 66.5

Female (March 2014) 69.3

Note: * - Per thousand persons, ^ - Per thousand live births, ICDS - (Integrated Child Development Services), KSY – Kishore Shakti Yojana, MBP – Maternity Benefit Program

Schemes as per Economic Survey 2017-18

Scheme Objective

ICDSFocuses on nutritional status of children (6 months -6

year) and pregnant & lactating women enrolled in

anganwadi centres across the state.

Sabla and

KSY

Provide supplementary nutrition to school adolescent

girls in the age group of 11-18 years

MBP

(PMMVY)

Provide financial assistance to pregnant and lactating

women ensuring their delivery conditions and regular

check-up of mother and the child.

Ladli Beti To improve the skewed child-sex ratio.

Source: NRHM, Economic Survey 2017-18, Sample Registration System (SRS) Bulletin September 2014, State Budget 2016-17, Economic Survey of J&K, 2014-15

JAMMU & KASHMIR

INDUSTRIAL

INFRASTRUCTURE


INDUSTRIAL INFRASTRUCTURE - INDUSTRIAL

ESTATES

Source: J&K SIDCO State Industrial Development Corporation

Bari Brahmana

Industrial Complex

Gangyal Industrial

Estate

Export Promotion

Industrial Park, Kartholi

Industrial Growth

Centre, Samba

Electronic Complex,

Rangreth

Khonmoh Industrial

Complex

Zainakote and Zakura

Industrial Estates

Software Technology

Park, Rangreth

Agri Processing Zone

for Apples

Pulwama Industrial

Complex

Agri Processing Zone

for Walnuts

Integrated Infrastructure

Development Project,

Udhampur

Industrial Growth

Centre, Budgam

Textiles Park, Kathua

JAMMU & KASHMIR

KEY SECTORS

Agriculture and Allied Activities

Handicraft and Handloom

Tourism

Sericulture


KEY SECTORS – AGRICULTURE AND ALLIED

ACTIVITIES… (1/2)

Food processing & agro-based industries (excluding conventional

grinding and extraction units) thrive in the state due to an excellent

climate for horticulture & floriculture. Total production@ of

horticulture crops in the state in 2018-19** stood at 3.61 million

tonnes with 446.72 thousand hectares area under production.

The Kashmir region is known for its horticulture industry. The

industry plays a vital role in the state’s economic development. In

2018-19**, total production of fruits in the state stood at around 2.39

million metric tonnes. The state is a leading producer of apples and

walnuts; the total apple production, in 2017-18P, stood at around

1.74 million metric tonnes. During April-September 2018, the state

exported fresh fruits worth US$ 4.61 million.

Wood from Kashmir willows is used to make cricket bats. Moreover,

Kashmiri saffron is renowned globally and generates export

revenues for the state.

The State Government is promoting organic production of crops. It

aims to minimise the use of fertilisers to Leh and Kargil districts so

that all crops cultivated there are on organic lines. In FY19*

production of rice, pulses and oilseeds reached 577,200 tonnes,

8,700 tonnes and 1,900 tonnes, respectively.

Crop Annual production in 2018-19 (‘000 tonnes)

Apple^ 1,744.07

Rice* 577.2

Honey** 2.27

Wheat* 478.8

Spices** 1.18

Onion^ 69.85

Total pulses* 8.7

Total oilseeds* 1.9

Vegetable** 1,182.42

Source: Economic Survey of J&K 2016, State Budget 2018-19 Department of Horticulture, Government of Jammu and Kashmir

Note: * - As per 1th Advance Estimates (Kharif only). ** - As per 1st Advance Estimates, # - Production 2016-17, @ - Includes Fruits, Vegetables, Spices, Honey, Plantation, Aromatic and

Flowers, Production 2018-19 to be expected in 2019, ^ - upto 2017-18


KEY SECTORS – AGRICULTURE AND ALLIED

ACTIVITIES… (2/2)

Krishi Rasayan Group is involved in the basic manufacturing of formulations and export of agrochemicals.

The company has a factory at Samba in Jammu.

Krishi Rasayan

Group

Zamindara Rice & General Mills was established in 1978 at Ranbir Singh Pura, Jammu.

The company has been recognised over the years for supplying of high quality basmati rice to its customers in the

state.Zamindara Rice &

General Mills

Sarveshwar Rice was founded by the late Shri Mulamal Ji in 1890 with Headquarters in Jammu.

Product range includes the complete range of Indian traditional Basmati rice, 1121 Basmati Rice, Pusa Basmati

Rice, Sharbati Rice, PR 11 rice, IR 8 rice, and so on

Sarveshwar Rice


Handicraft is J&K’s traditional industry and occupies an important

place in the economy of the state. Kashmiri silk carpets are famous

globally and earn substantial foreign exchange. Wood from Kashmir,

popularly known as Kashmir willow, is used to make high-quality

cricket bats. The cottage handicrafts industry provides direct and

gainful employment to around 340,000 artisans.

The state has established the Jammu & Kashmir Handicrafts Sales &

Export Promotion Corporation and Jammu and Kashmir State

Handloom Development Corporation to promote development and

growth of the handicraft sector. The handicrafts and handloom

sectors have engaged a number of people as artisans and weavers.

The total number of handicrafts and handloom establishments in the

state are 60,397.

Source: Economic Survey of J&K, 2014-15, 2017-18, Ministry of Textiles

Note: * Upto October 2017, ** - Up to February 2019, Update on fibre production in the state to be expected in J&K’s Economic Survey 2018-19

Fabric Production

Industries 2015-16 2016-17 2017-18*

Amount of fabric

produced (million

meters)

10.95 13.911 9.498

Value (US$ million) 38.38 48.78 33.30

Exports from Jammu and Kashmir

14.9

6

10.9

0

6.9

2

17.4

7

14.0

8

19.0

9

14.8

0

5.5

9

10.1

3

10.9

7

0

5

10

15

20

25

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

2014-1

5

2015-1

6

2016-1

7

2017-1

8

2018-1

9**

Manmade Yarn, Fabric, Madeups

Carpet (Excluding Silk) Handmades

KEY SECTORS – HANDICRAFTS AND HANDLOOM…

(1/2)

There are 523 registered handloom industrial cooperative

societies in the state and have a membership of 15,275 weavers.

During 2017-18*, fabric production in the state reached 9.498

million meters, valued at US$ 33.3 million.


KEY SECTORS – HANDICRAFTS AND HANDLOOM…

(2/2)

Sutlej Textiles and Industries is a part of the K K Birla Group; the company entered the state when Chenab

Textile Mills of J&K merged with Sutlej Textiles in 1997.

Sutlej is an integrated company in the textiles industry. Its product range includes yarn, fabrics, home furnishing

and garments.

Chenab Textile Mills, a unit of Sutlej Textiles and Industries Ltd, is located in Kathua, J&K; it manufactures cotton

yarn and man-made fibre yarn.

The company has installed production capacity of 416,616 pieces for spindles and 62 home textile looms. In

2015, company acquired Birla Textile Mills. In 2014-15, Birla Textile Mills has installed capacity of 83,376 spindle.

Sutlej Textiles and

Industries Ltd


KEY SECTORS – TOURISM

Tourist Arrivals in Jammu & Kashmir (million)

Source: Ministry of Tourism, Economic Survey 2017-18

12.5

0

10.9

5

9.5

3

9.2

0

8.4

3

14.3

2

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2012

2013

2014

2015

2016

2017 (

P)

Jammu is famous for its temples, while the Kashmir Valley is known

for its scenic beauty. The tourism sector in the state has a huge

employment potential for skilled persons as well as for people

without any specialised skills such as guides, sledgewallas,

ponywallas, etc.

Major tourist attractions include Chashma Shahi Springs, Shalimar

Bagh and the Dal Lake in Srinagar; Gulmarg, Pahalgam and

Sonamarg in the Kashmir Valley; and Ladakh, Vaishno Devi temple

and Patnitop near Jammu. Ladakh festival in September and Sindhu

Darshan in June are popular events in the state. The Department of

Tourism of J&K has launched aero ballooning to boost the influx of

tourists.

In order to attract tourists, the government has developed new

destinations such as the valleys of Dodhpathri, Lolaab & Gurez. The

tourism board has also revived the heritage events in Kashmir &

Leh-Ladakh, river rafting, light & sound show in Sonmarg, along with

various new trekking trails to tap the beauty of 2,200 natural lakes,

that remain unexplored by tourists.

Total tourist arrivals to the state reached 14.32 million in 2017(P) out

of which 14.24 million were domestic tourists and 79.77 thousand

were foreign tourists.

Note: P – Provisional, Update to be expected in November 2019


KEY SECTORS – SERICULTURE

Kashmir is well known for its quality of silk and traditional silk-

weaving industry. Sericulture is an agro-based labour intensive

cottage industry, providing gainful employment to about 30,000

families in rural areas of the state.

J&K’s Sericulture Development Department organises cocoon

auction markets in the state to facilitate farmers to sell their cocoon

produce at competitive rates. The state produces around 1,022 MT

of cocoons, annually, which help in generating huge income for the

state through silk production.

The Department has envisaged an ambitious vision programme in

the form of a document for the next twenty years to cover about

500,000 farmers in the activity of sericulture to take the cocoon

production to newer heights of upto 25,000MT. As of October 2018,

a silk unit is being set up in Jammu district, which is expected to

start production by January 2019.

About 150,000 metres of silk cloth is produced per annum in J&K.

During 2017-18(P), 132 MT of raw silk was produced in the state

and had a production target of 190 MT for 2018-19(T)*.

Source: Economic Survey of J&K, 2014-15, State Budget 2016-17, News Articles

Raw Silk Production

YEAR Production (MT)

2013-14 136

2014-15 138

2015-16 127

2016-17 145

2017-18(P) 132

2018-19(T)* 190

Note: P – Provisional, T - Target , * - Up to December 2018, MT – Million Tonnes

JAMMU & KASHMIR

KEY PROCEDURES &

POLICIES


SINGLE-WINDOW CLEARANCE MECHANISM

APCC, a high-power clearance committee, has been set up to rapidly clear projects under the chairmanship of the Chief Secretary of the State.

The committee serves as a single-window clearance system for projects related to all cases of export-oriented units and prestigious units.

Examination of proposal

Proposal sent to various boards such as Pollution Control Board and Power Department

Receipt of response from these boards

Proposal sent for review to APCC, which is chaired by the Chief Secretary of state and relevant secretaries

Decision on whether the project is feasible or not

Land allotment and provisional registration

The entire procedure is completed within a maximum time-frame of two months.

Note: APCC – Apex Projects Clearance Committee


KEY NODAL AGENCIES FOR SINGLE-WINDOW

CLEARANCE

Agency Description

Jammu & Kashmir State Industrial

Development Corporation (Jammu

and Kashmir SIDCO): State-level

nodal agency for single-window

clearance

Jammu and Kashmir SIDCO is the nodal agency for promotion and development of medium and large

scale industries in the state.

Established in 1967, its purpose is to act as a catalyst to inspire and accelerate industrial development.

Since its inception, Jammu and Kashmir SIDCO has acted as a prime mover in the state for promotion of

industrial ventures. It plays the role of ‘institutional entrepreneur’.

The corporation’s activities include supporting modernisation, brand promotion, rehabilitation of sick units

and export promotion.

Jammu and Kashmir SIDCO acquires land, constructs internal roads and affluent disposal facilities, and

provides for supply of water and power in the industrial estate.

The corporation offers a variety of financial assistance programmes for setting up new units and for

expansion, diversification and modernisation of existing units.

Directorate of Industries and

Commerce: District-level committee

for single-window clearance

The directorate provides sanctions and clearances to set up small scale industrial units in the state.

The General Manager (GM) is the key nodal officer for sanctions.

Jammu and Kashmir Industrial and

Technical Consultancy

Organisation Limited

(Jammu and Kashmir ITCO)

Set up in April 1997 as a subsidiary of Industrial Development Bank of India.

Primary objective is to provide consultancy services to existing and potential micro, small and medium

scale industrial units.

Jammu and Kashmir State

Financial Corporation (JKSFC)

Established to act as a regional development bank with the aim of promoting industries and boosting

economic development in the state.

Offers term finance to existing units for their expansion, diversification, renovation, modernisation and

procurement of quality control equipment and energy saving devices.

Micro, Small and Medium

Enterprises (MSME) –

Development Institute,

Jammu/Srinagar

Formerly known as Small Industries Service Institute, it provides a comprehensive range of industrial

extension services, including identification of suitable line of production and marketing of the product.


CONTACTS

Agency Contact information

Jammu & Kashmir State Industrial Development

Corporation (Jammu and Kashmir SIDCO)

Drabu House, Rambagh,

Srinagar - 190 015.

Phone: 91-194-2430 036, 2434 402

Fax: 91-194-2430 036

Email: [email protected]

Website: http://www.jksidco.org/

Jammu and Kashmir State Financial Corporation (JKSFC)

Sheikh-ul-Alam Complex, Near Govt. Silk Factory,

SPO Rajbagh, Srinagar, J&K, 190008

Phone: 91-194-2310567, Fax: 0194-2312672

Website: http://jksfc.nic.in

Micro, Small and Medium Enterprises (MSME) –DevelopmentInstitute, Jammu/Srinagar

Industrial Estate, Digiana,

Jammu - 180 010 ( Jammu and Kashmir)

Phone: 91-191-2431077, 2435425

Fax: 91-191-2431077

E-mail: [email protected]

Website: www.msmedijammu.gov.in


COST OF DOING BUSINESS IN JAMMU & KASHMIR

Cost parameter Cost estimate Source

Hotel costs (per room per night) US$ 15-200 Leading hotels in the state

Office space rent (per sq ft per month) US$ 0.4-2.0 Industry sources

Residential rent (2,000 sq ft house) US$ 200-700 per month Industry sources

Power cost (per kWh)Commercial: US$ 0.05-0.086

Industrial: US$ 0.05-0.06

Jammu and Kashmir State Electricity Regulatory

Commission

Labor costs US$ 6.3-9.3 Labour Bureau, Government of India, April 2015


STATE ACTS AND POLICIES … (1/3)

New Industrial Policy,

2016

To attract large investments and generate high employment opportunities in the state for the production of goods

as well as services.

To ensure the upliftment of the weavers, artisans as well as traders across the handloom and handicrafts sector.

Formulated to make appointments against gazetted and non-gazetted vacancies on contractual basis.

To catalyse the industrial development in Jammu & Kashmir, the state government has sanctioned incentives for

the development of large/medium/small and tiny industries in the industrially backward areas of the state.

Objectives

Securing a policy for its employees to cover accidental deaths and disabilities under the scheme.

New "Contractual"

Recruitment Policy, 2015

Incentives for

Development

Large/Medium/Small

Scale and Tiny Sector

Industries

Group Janta Personal

Accidental Insurance

Policy, 2015

Read more

Read more

Read more

Read more

http://www.dcmsme.gov.in/policies/state/jk/pstjk01x.htm

http://zeenews.india.com/news/jammu-and-kashmir/jk-govt-formulates-new-contractual-recruitment-policy_1581752.html

http://www.indiaenvironmentportal.org.in/files/file/J & K Industrial Policy-2016.pdf

http://www.indiaenvironmentportal.org.in/content/387246/solar-power-policy-for-jammu-kashmir-2013/



Solar Power Policy for

Jammu and Kashmir

2013

To promote the generation of green and clean power in the state using solar energy.

To create environmental consciousness among citizens.

To engage private players through initiatives such as ‘Udaan’ and ‘Himayat’.

To move from a state owned institutional framework to a larger non-Governmental effort.

To triple the existing training facilities.

The Act aims to help banks in debt recovery, which would increase the credit-deposit ratio of banks.

Objectives

To introduce investment-friendly incentives, attract private sector interest in the hydel projects, devise measures to

support the private sector in mobilizing financing and facilitate the establishment of a domestic manufacturing base

for small hydel technology in the state.

Skill Development Policy

2012–17

Securitisation and

Reconstruction of

Financial Assets and

Enforcement of Securities

(SARFAESI) Act

Policy for Development

of Small Hydro Energy

for Power Generation

Read more

Read more

Read more

Read more

http://kashmirmediawatch.com/kashmir/cabinet-approves-jk-skill-development-policy/13593

http://www.indiaenvironmentportal.org.in/content/387246/solar-power-policy-for-jammu-kashmir-2013/

http://jakeda.jk.gov.in/links/SHP (Draft) Policy .pdf

http://articles.economictimes.indiatimes.com/2013-05-09/news/39144177_1_jammu-and-kashmir-state-level-bankers-committee-credit-deposit-ratio



The Jammu and Kashmir

State Forest Policy 2011

To conserve forest resources for the ecosystem.

To meet the population’s need for forest produce.

To alleviate poverty through developmental activities.

To ensure judicious and optimum utilisation of the state’s water resources.

To advance reforms in the water sector.

To address issues related to unemployment among the state’s educated youth.

Objectives

To bring SMART governance in the state by using IT in the Government processes.

To increase the use of IT in all sectors and make it a sunrise industry.

To encourage and accelerate investments and growth in IT hardware, software, internet, training, IT-enabled

services, telecom, e-commerce and related sectors in the state.

Jammu and Kashmir

Water Resource

Regularisation &

Management Act 2010

Sher-e-Kashmir

Employment & Welfare

Programme for the

Youth 2009

Jammu & Kashmir IT

Policy 2004

Read more

Read more

Read more

Read more

http://jkforestadm.nic.in/pdfs/FOREST POLICY 19-JAN-2011.pdf

http://jakemp.nic.in/right.htm

http://vikaspedia.in/e-governance/national-e-governance-plan/it-policy_-jammu-_-kashmir

http://jkswrra.nic.in/act.pdf

JAMMU & KASHMIR

ANNEXURE


ANNEXURE…(1/2)- SOURCES

Data Sources

GSDP (state) Directorate of Economics & Statistics of Jammu & Kashmir, Central Statistics Office

Per capita GSDP figures Directorate of Economics & Statistics of Jammu & Kashmir, Central Statistics Office

GSDP (India) Directorate of Economics & Statistics of Jammu & Kashmir, Central Statistics Office

Installed power capacity (MW) Central Electricity Authority

Wireless subscribers (No) Telecom Regulatory Authority of India

Internet subscribers (Mn) Telecom Regulatory Authority of India

National highway length (km) NHAI & Roads and Building Department

Airports (No) Airports Authority of India

Literacy rate (%) Census 2011

Birth rate (per 1,000 population) SRS Bulletin, September 2017

Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to December 2018

Operational PPP projects (No) DEA, Ministry of Finance, Government of India


ANNEXURE…(2/2) - EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$

2004–05 44.95

2005–06 44.28

2006–07 45.29

2007–08 40.24

2008–09 45.91

2009–10 47.42

2010–11 45.58

2011–12 47.95

2012–13 54.45

2013–14 60.50

2014-15 61.15

2015-16 65.46

2016-17 67.09

2017-18 64.45

Q1 2018-19 67.04

Q2 2018-19 70.18

Q3 2018-19 72.15

Year INR Equivalent of one US$

2005 44.11

2006 45.33

2007 41.29

2008 43.42

2009 48.35

2010 45.74

2011 46.67

2012 53.49

2013 58.63

2014 61.03

2015 64.15

2016 67.21

2017 65.12

2018 68.36

Source: Reserve Bank of India, Average for the year


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